Business text messaging is a form of real-time communication involving the exchange of text messages between a business and its customers. Text messaging services offer multiple features that enable companies to send media content, automate responses, and deploy marketing campaigns. In this article, we further explore what business text messaging is and its role in…
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What Is Deferred Revenue? Definition, Journal Entry & Example
Deferred revenue (also called unearned revenue or income) is a liability owed to a customer for the value of goods or services the customer has paid for but not yet received. When a customer prepays for goods or services, the business must record the receipt of cash as deferred revenue on the balance sheet and…
Vacation Rental Insurance: Coverage, Cost & How it Works
The common risks associated with owning a rental property are protected by vacation rental insurance. This policy is similar to a homeowner’s policy: it provides coverage for the structure, contents, and liability, plus income loss protection. Vacation rental policies can range from $1,740 to $2,820 a year for a small, single-family home. For a quick…
What Is Direct Inward Dialing (DID)? Benefits & How to Get Yours
Direct inward dialing (DID) routes inbound calls directly to a specific phone or extension within a company instead of going through automated menus. Businesses purchase DID numbers from a service provider and then assign them to users without requiring separate phone lines for each. With a DID number, companies streamline the caller experience by connecting…
What Is Penetration Pricing? Complete Guide + Examples
Penetration pricing is a strategy that sets lower initial prices for products or services, with the goal of quickly acquiring a market share and customer base.
Penetration pricing is a method used by businesses entering a market with a new product or service. It’s characterized by offering significantly lower prices compared to competitors at first, then strategically increasing prices to a more sustainable level. It’s particularly effective in competitive markets, enabling businesses to stand out among established brands and capture consumer…
What is Form 2220 (+Example)
Form 2220, used by corporations, calculates the underpayment penalty (if any) at a predetermined interest rate from the time at which a quarterly payment was due until it was paid or the due date of the return, if earlier. Corporations are expected to pay the IRS any income tax due throughout the year if the…
What Is Fixed Asset Turnover Ratio (+ Example)
The fixed asset turnover ratio, also known as the FAT ratio, is a financial metric that measures how efficiently a company uses its fixed assets to generate sales. In other words, it tells you how much revenue a company gets for every dollar invested in fixed assets. However, a high FAT ratio doesn’t necessarily translate…
What Is Form 7205 (+ Example)
IRS Form 7205 is used to claim a deduction for energy-efficient commercial buildings placed in service during the current tax year. This deduction, also known as the section 179D deduction, is available to property owners and designers who add energy-efficient property to commercial buildings. To take the deduction, property owners must verify that property modifications…